Walmart Or Target? Ahead of Retail Earnings, Jim Cramer Says Stick With This FAANG Stock When In Doubt
Portfolio Pulse from Shanthi Rexaline
Ahead of the retail earnings season, CNBC's Jim Cramer has given his take on Walmart (WMT), Target (TGT), and Amazon (AMZN). Despite Walmart's consistent delivery and Target's cost discipline, Cramer suggests sticking with Amazon, which has surpassed estimates in Q2 and has a promising forecast for Q3. Walmart shares have gained 13.7% YTD, while Target is down over 12%. The SPDR S&P Retail ETF (XRT) has seen a modest 10% advance.
August 14, 2023 | 9:19 am
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POSITIVE IMPACT
Amazon surpassed estimates in Q2 and issued an upbeat forecast for Q3. The average analysts' one-year price target promises a nearly 26% upside.
Amazon's strong Q2 performance and positive Q3 forecast indicate a positive outlook, which could lead to a rise in stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
Walmart has consistently delivered, with strong grocery and online sales. Shares have gained 13.7% YTD.
Walmart's strong performance and raised forecast for the year indicate a positive outlook, which could lead to a rise in stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P Retail ETF (XRT) has seen a modest 10% advance YTD.
The modest advance in the SPDR S&P Retail ETF indicates a positive outlook for the retail sector, which could lead to a rise in the ETF's price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Target reported in-line revenue and managed an earnings beat, thanks to cost discipline. However, shares are down over 12%.
Despite Target's cost discipline and earnings beat, the drop in share price indicates a negative market sentiment, which could continue in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80